WESTERN UNION CO (WU)
US9598021098 - Common Stock
We assign a fundamental rating of 5 out of 10 to WU. WU was compared to 100 industry peers in the Financial Services industry. WU scores excellent on profitability, but there are concerns on its financial health. WU is cheap, but on the other hand it scores bad on growth. Finally WU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
WU had positive earnings in the past year.
In the past year WU had a positive cash flow from operations.
In the past 5 years WU has always been profitable.
WU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WU has a better Return On Assets (8.80%) than 87.00% of its industry peers.
WU's Return On Equity of 103.49% is amongst the best of the industry. WU outperforms 99.00% of its industry peers.
The Return On Invested Capital of WU (10.05%) is better than 82.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WU is above the industry average of 7.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.8% | ||
| ROE | 103.49% | ||
| ROIC | 10.05% |
ROA(3y)9.16%
ROA(5y)9.48%
ROE(3y)182.63%
ROE(5y)N/A
ROIC(3y)11.67%
ROIC(5y)11.26%
1.3 Margins
Looking at the Profit Margin, with a value of 16.07%, WU is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
In the last couple of years the Profit Margin of WU has remained more or less at the same level.
WU has a better Operating Margin (17.80%) than 62.00% of its industry peers.
WU's Operating Margin has improved in the last couple of years.
WU has a Gross Margin (38.28%) which is in line with its industry peers.
WU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.8% | ||
| PM (TTM) | 16.07% | ||
| GM | 38.28% |
OM growth 3Y-3.33%
OM growth 5Y1.59%
PM growth 3Y-2.27%
PM growth 5Y-1.17%
GM growth 3Y-2.42%
GM growth 5Y-0.82%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WU is still creating some value.
WU has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WU has less shares outstanding
WU has a better debt/assets ratio than last year.
2.2 Solvency
WU has an Altman-Z score of 1.05. This is a bad value and indicates that WU is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.05, WU is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
WU has a debt to FCF ratio of 6.07. This is a slightly negative value and a sign of low solvency as WU would need 6.07 years to pay back of all of its debts.
WU has a Debt to FCF ratio (6.07) which is comparable to the rest of the industry.
A Debt/Equity ratio of 3.20 is on the high side and indicates that WU has dependencies on debt financing.
With a Debt to Equity ratio value of 3.20, WU is not doing good in the industry: 78.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.2 | ||
| Debt/FCF | 6.07 | ||
| Altman-Z | 1.05 |
ROIC/WACC1.34
WACC7.49%
2.3 Liquidity
WU has a Current Ratio of 0.67. This is a bad value and indicates that WU is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.67, WU is doing worse than 63.00% of the companies in the same industry.
A Quick Ratio of 0.67 indicates that WU may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.67, WU is doing worse than 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.78% over the past year.
The Earnings Per Share has been decreasing by -1.95% on average over the past years.
Looking at the last year, WU shows a decrease in Revenue. The Revenue has decreased by -4.39% in the last year.
WU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.86% yearly.
EPS 1Y (TTM)1.78%
EPS 3Y-2.37%
EPS 5Y-1.95%
EPS Q2Q%6.98%
Revenue 1Y (TTM)-4.39%
Revenue growth 3Y-3.41%
Revenue growth 5Y-4.86%
Sales Q2Q%-5.63%
3.2 Future
Based on estimates for the next years, WU will show a small growth in Earnings Per Share. The EPS will grow by 2.49% on average per year.
WU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.41% yearly.
EPS Next Y4.75%
EPS Next 2Y3.7%
EPS Next 3Y4.62%
EPS Next 5Y2.49%
Revenue Next Year-3.32%
Revenue Next 2Y-1.36%
Revenue Next 3Y-0.31%
Revenue Next 5Y0.41%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WU is valuated cheaply with a Price/Earnings ratio of 6.43.
91.00% of the companies in the same industry are more expensive than WU, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.20, WU is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.91, the valuation of WU can be described as very cheap.
92.00% of the companies in the same industry are more expensive than WU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.00. WU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.43 | ||
| Fwd PE | 5.91 |
4.2 Price Multiples
WU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WU is cheaper than 94.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WU is valued cheaper than 82.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.77 | ||
| EV/EBITDA | 5.07 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.35
PEG (5Y)N/A
EPS Next 2Y3.7%
EPS Next 3Y4.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.89%, WU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.55, WU pays a better dividend. On top of this WU pays more dividend than 98.00% of the companies listed in the same industry.
WU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.89% |
5.2 History
The dividend of WU has a limited annual growth rate of 4.89%.
WU has paid a dividend for at least 10 years, which is a reliable track record.
WU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.89%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
WU pays out 48.10% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of WU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.1%
EPS Next 2Y3.7%
EPS Next 3Y4.62%
WESTERN UNION CO
NYSE:WU (11/22/2024, 6:30:00 PM)
After market: 11.06 0 (0%)11.06
+0.2 (+1.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.89% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.43 | ||
| Fwd PE | 5.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.8% | ||
| ROE | 103.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.8% | ||
| PM (TTM) | 16.07% | ||
| GM | 38.28% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.78%
EPS 3Y-2.37%
EPS 5Y
EPS Q2Q%
EPS Next Y4.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.39%
Revenue growth 3Y-3.41%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y